A post termination restrictive covenant, as the name suggests, is a clause which is part of a contract of employment that restricts certain activities after an individual has left your employment.

Although mainly found in contracts of employment, restrictive covenant clauses can also be found in shareholders agreements and collateral contracts.

An important function of a restrictive covenant is to ensure that employees who have been privy to confidential, or commercially sensitive information, are not able to use it for competitive advantage, which might benefit their new employer; which may be a particular risk if they join a rival company.

Post termination restrictive covenants need to be carefully drafted and tailored to the individual circumstances of a company, in order to ensure that it is a legally enforceable contract.

At Mackrell Turner Garrett, our specialist employment team is able to provide expert advice and practical support in drafting restrictive clauses, for inclusion in a contract of employment.

We have produced a Guide to Post Termination Restrictive Covenants which is available to download here. 

For further help and guidance on restrictive covenants please contact us